Weakness on China’s mainland bourses has seeped down to Hong Kong, sending the iShares China Large-Cap ETF (NYSEArca: FXI), the largest U.S.-listed China ETF, lower by 19.4% over the past 90 days. FXI holds large-cap Chinese equities that trade on the Hong Kong Stock Exchange. The ProShares Short FTSEChina 50 (NYSEArca: YXI) is an idea for bearish traders looking to eschew leverage while still profiting from declines in FXI. [Emerging Market ETF Buying Spree Pauses]
“Like the CHAD ETF, the ProShares Short FTSE China 50 is an inverse — though not leveraged — fund. When the FTSE China 50 Index falls 1%, the ProShares Short FTSE China 50 should rise 1%. That index is also tracked by FXI,” according to TheStreet.com.
ProShares Short FTSE/Xinhua China 50
ETF Trends editorial team contributed to this article.